The “Double Trade” strategy may seem quite simple in its essence but it is mainly used by investors who have advanced knowledge of binary options trading. The “Double Trade” strategy consists of two steps:
First, the investor chooses an asset to trade with, then purchase it and observes if the trade is proceeding in his/her favor. Then, if the trade proceeds in the investor`s favor, he/she will choose to purchase another option with the same asset, and, therefore gain bigger profit.
As it was mentioned earlier, this type of strategy is basically not for beginners in binary options trading. If you are a beginner, do not risk by using the “Double Trade” strategy, because it involves an in-depth knowledge of the financial markets, which a beginner without much of experience is impossible to possess.
Let us make an example of this “Double Trade” strategy, so that it would be more clear to you:
You decided to purchase a $200 “put” option of Nasdaq at 5,000. Before the expiry time, you notice that that this trade is proceeding in your favor and trading below this level. Then you will purchase another “put” option.
Of course, do not forget that strategies are easier said than done. The financial markets can make unexpected movements due to many factors that influence them, so it is very important not to underestimate the importance of your investment. It is advisable not to make too big investments for your trades, no matter the strategy you use, because in time, by gaining more experience, you will see that even the best strategy can sometimes fail.
The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument